Warren Buffett's Love Affair With Liquor
on 11/11/10 at 12:47 pmIndustry
When Warren Buffet buys into a new line of business, I get very interested. McLane, a wholly-owned subsidiary of Buffett’s Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B), announced on October 29th that it was acquiring Horizon Wine & Spirits, the largest wholesale distributor of alcohol in Tennessee. This is just the latest expansion into the liquor distribution business, which started in March when McLane acquired Kahn Ventures, a wholesale distributor of wine and spirits in Georgia and North Carolina. Back then, Mr. Buffett stated that he was very excited about:
developing new opportunities to innovate, grow and lead the beverage industry. We expect that the acquisition will provide us with a solid platform for potentially acquiring other similar high quality wholesale distributors.